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- 1 Blockchain gaming continues to top the dApp industry.
- 2 Blockchain games based on Play-to-Earn and Non-Fungible Tokens have gained popularity.
The gaming industry is being revolutionized with blockchain technology. Blockchain’s security provides new opportunities for value creation. Blockchain games showed a significant rise with a 12% jump in users from the previous quarter.
But still, the market share of the web3 gaming sector fell in the fourth consecutive quarter. Along with investments, blockchain gaming also fell sharply in Q3.
Dappradar, an analytics firm, shows that blockchain gaming continues to rule the decentralized app (dApp) landscape in Q3. There was a notable rise from the previous quarter with an average of more than 786,000 unique active wallets (UAW).
However, market share fell for the fourth successive quarter. Web3 gaming accounted for 35% of the dApp pie in Q3 which is a drastic fall from 51% in Q3 2022. DappRadat allocates the drop to increased interest in other sectors like non-fungible tokens (NFTs), and decentralized finance(DeFi), eliminating fundamental issues with blockchain gaming.
Data shows that top games include Alien Worlds, Sweat Economy, and Splinterlands. Alien Worlds recorded a quarterly average of 527,000 UAWs. The reports highlight that the interest has shifted to games based on move-to-earn models. It is a new process in web3 gaming that rewards users for participating in fitness and sports-related activities.
Animoca Brands, Polygon, and Yuga Labs are the biggest fundraisers. Animoca Brands grabbed a $360 Million deal which raised its value to $5 Billion. Polygon also cracked a deal with Sequoia Capital with $450 Million. Similarly, Bored Ape Yacht Club studio, Yuga Labs collected $450 Million worth of investments in a funding round led by Animoca Brands.
Investments Fell Short in Q3 2023
The co-founder of Sandbox and president of BCG, Sebastian Borget said that Polygon benefited from the P2E gaming model and NFTs. He also predicted the rise of NFTs and blockchain games in ImmutableX would see the distribution shifting in Q2 of 2022. He also added “NFTs represent an opportunity for developers to create games with player-owned economies.”
On the other hand, investments fell short in Q3 2023. There was a 38% drop from the previous quarter. Total investments in 2023 reached $2.3 Billion which is just 30% of last year’s tally. As per the recent reports from Messari, Q3 was the worst performance since Q4 2020.
However, it was encouraging to find that a considerable number of blockchain gaming investments (more than 43%) were directed toward investment firms. This is considered a sign of their readiness to back forthcoming Web3 gaming sensations.
Summary
The Blockchain gaming industry has risen from zero value market to sizable figures. In the future, it is projected to rise sharply. The growth of the blockchain industry is fueled by NFTs, free to play, and play to earn models.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
